California: Paloma appraisal well finds deeper zone

Neon Energy Ltd., Perth, said its Paloma Deep-2 appraisal well in the San Joaquin basin of California confirmed the extension of the hydrocarbon-bearing zones encountered in its Paloma Deep-1 discovery well and penetrated a McDonald sandstone reservoir with good oil and gas shows.

Neon Energy set 7-in. liner for tests. Total depth is 13,931 ft at Paloma Deep-2.

Meanwhile, the Paloma Deep-1 well stabilized at 7 b/d of oil and 20 Mcfd of gas from additional Lower Antelope shale perforations in a more sand-prone section. Neon Energy called the 32% oil cut encouraging because it comes from an unstimulated vertical section. The company plans to test several shallower zones.